Binance founder Changpeng Zhao has recently expressed his concerns about the growing hype surrounding memecoins, urging developers to focus on creating more utility-driven tokens. In a post on X (formerly Twitter) on Nov. 26, Zhao acknowledged the popularity of memes but raised unease over their current direction, describing memecoins as “a little weird.”
Zhao highlighted that most memecoins lack real-world value and rely heavily on hype and social media trends to attract investors. He encouraged developers to shift their focus towards creating blockchain applications with tangible utility rather than following short-lived trends. He stated, “I am not against memes, but meme coins are getting ‘a little’ weird now. Let’s build real applications using blockchain.”
While some community members pointed out that influential figures like Elon Musk have endorsed certain memecoins, making it challenging to curb their popularity, Zhao clarified that his intention is not to eliminate memecoins but to inspire more developers to focus on creating products with practical applications.
Despite Zhao’s appeal, the crypto community remains divided. Some agree with his call for utility-driven innovation, while others defend memecoins as a unique aspect of the crypto ecosystem that could facilitate retail adoption.
Zhao’s comments seem to be influenced by the rising controversies surrounding memecoin launches. Recently, the Solana-based memecoin deployer Pump.fun faced backlash after some issuers used its platform to share harmful content, including threats related to token price targets.
The memecoin sector continues to be one of the fastest-growing areas in crypto, despite its volatility and association with scams. Retail investors are attracted by the potential for significant returns, often overlooking the risks. This enthusiasm has propelled memecoins into the spotlight during the current bull market cycle.
DWF Labs recently launched a $20 million fund dedicated to memecoin investments, indicating growing institutional interest in the sector. According to data from CryptoSlate, the market cap of memecoins has more than doubled to a peak of $120 billion since Donald Trump’s US presidential election victory, reflecting their surging popularity.
Crypto analysts like Alex Obchakevich predict that the memecoin sector could reach $200 billion, driven by increased market liquidity and bullish market sentiment. Despite the debates surrounding memecoins, their growth and popularity show no signs of slowing down in the crypto space.
